Alderwood Company has provided the following information prior to any year$-$end bad debt adjustment:

Cash sales, $$464,000$

Credit sales, $$1,392,000$

Selling and administrative expenses, $$372,000$

Sales returns and allowances, $$132,000$

Gross profit, $$1,512,000$

Accounts receivable, $$372,000$

Sales discounts, $$84,000$

Allowance for doubtful accounts credit balance, $$4,160$

Alderwood estimates bad debt expense assuming that $1\mathrm{.}5\%$ of credit sales have historically been uncollectible. How much is Alderwood's bad debt expense?

Multiple Choice

$$20,880$

Itr

$$24,590.$

$$25,040.$

$$16,720.$